NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.





F I S C A L I M P A C T R E P O R T





SPONSOR: Altamirano DATE TYPED: 02/08/99 HB
SHORT TITLE: Unused Merchandise Act SB 104
ANALYST: O'Connell


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
NFI NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



Administrative Office of the Courts (AOC) analysis

Corrections Department analysis



SUMMARY



Synopsis of Bill



Senate Bill 104 prohibits the sale of certain unused merchandise under specific conditions and requires certain sellers to keep records of unused merchandise. Selling unused merchandise such as baby food, infant formula, cosmetics, drugs or medical devices in open markets (swap meets or flea markets) will be a violation of the Unused Merchandise Ownership Protection Act if valid written authorization from the manufacturer is not displayed.



Significant Issues



A vendor of unused merchandise shall maintain receipts for the vendor's purchase of any unused merchandise sold or offered for sale at an open market. Receipts shall be kept for two years after the sale of the merchandise.



Vendors who operate under the following would be exempt from the provisions of Senate Bill 104: religious, charitable or educational non-profit events, or industry/association trade shows. Also exempt are vendors of new items sold by authorized representatives, distributors and manufacturers, catalog or future delivery sales, firewood, building supplies, gravel, sand, live animals, vehicles subject to registration, food for human consumption at the open market or immediately after, antiques or historical items, food that was grown and harvested by the vendor, and art or crafts.



Senate Bill 104 makes the first violation of the Unused Merchandise Ownership Act a misdemeanor, Second offenses will be fourth degree felonies, and third or subsequent offenses will be a third degree penalty.



BOC/njw